Senate File 230 H-1050 Amend Senate File 230, as passed by the Senate, as follows: 1 1. Page 1, after line 8 by inserting: 2 < Sec. ___. Section 321.69, subsections 1, 2, 3, 4, 7, 8, and 3 9, Code 2021, are amended to read as follows: 4 1. A certificate of title shall not be issued for a motor 5 vehicle unless a damage disclosure statement has been made 6 by the transferor of the vehicle and is furnished with the 7 application for certificate of title. A damage disclosure 8 statement shall be provided by the transferor to the transferee 9 in a transfer of ownership of a motor vehicle. The new 10 certificate of title and registration receipt shall state 11 on the face whether a prior owner had disclosed that the 12 vehicle was damaged to the extent that it was a wrecked or 13 salvage severely damaged vehicle as defined in section 321.52, 14 subsection 4 , paragraph “e” . 15 2. The damage disclosure statement required by this section 16 shall, at a minimum, state whether the transferor knows if the 17 vehicle was titled as a salvage, rebuilt, or flood vehicle in 18 this or any other state prior to the transferor’s ownership 19 of the vehicle and, if not, whether the transferor knows if 20 the vehicle was damaged to the extent that it was a wrecked or 21 salvage severely damaged vehicle as defined in section 321.52, 22 subsection 4 , paragraph “e” , during or prior to the transferor’s 23 ownership of the vehicle. 24 3. The damage disclosure statement shall be provided by the 25 transferor to the transferee at or before the time of sale. 26 If the transferor is not a resident of this state or if the 27 transferee acquired the vehicle by operation of law as provided 28 in section 321.47 , the transferee shall not be required to 29 submit a damage disclosure statement from the transferor with 30 the transferee’s application for title unless the state of the 31 transferor’s residence requires a damage disclosure statement. 32 However, the transferee shall submit a damage disclosure 33 statement with the transferee’s application for title 34 indicating whether a salvage, rebuilt, or flood title had ever 35 -1- SF230.460 (3) 89 th/ns 1/ 5 #1.

existed for the vehicle, and if not, whether the vehicle was 1 damaged to the extent that it was a wrecked or salvage severely 2 damaged vehicle as defined in section 321.52, subsection 4 , 3 paragraph “e” , during or prior to the transferor’s ownership 4 of the vehicle, and the year, make, and vehicle identification 5 number of the motor vehicle. The transferee shall not be 6 required to indicate whether the vehicle was damaged to the 7 extent that it was a wrecked or salvage severely damaged 8 vehicle as defined in section 321.52, subsection 4 , paragraph 9 “e” , under this subsection if the transferor’s certificate of 10 title is from another state and if it the certificate of title 11 indicates that the vehicle is salvaged and not rebuilt or is 12 another state’s salvage certificate of title. 13 4. A lessee who has executed a lease , as defined in section 14 321F.1 , shall provide a damage disclosure statement to the 15 lessor at the termination of the lease. The damage disclosure 16 statement shall be made on a separate disclosure document 17 and shall state whether the vehicle was damaged during the 18 term of the lease to the extent that it was a wrecked or 19 salvage severely damaged vehicle as defined in section 321.52, 20 subsection 4 , paragraph “e” . The lessee’s damage disclosure 21 statement shall not be submitted with the application for 22 title, but the lessor shall retain the lessee’s damage 23 disclosure statement for five years following the date of the 24 statement. 25 7. a. The damage disclosure statements shall be made 26 on the back of the certificate of title if the title is 27 available to the transferor at the time of sale. If the title 28 is not available at the time of sale or if the face of the 29 transferor’s Iowa title contains no indication that the vehicle 30 was previously salvaged , or titled as a salvage, rebuilt, 31 or flood vehicle , or previously damaged to the extent that 32 it was a severely damaged vehicle, and the transferor knows 33 or reasonably should know that the vehicle was previously 34 salvaged , or titled as a salvage, rebuilt, or flood vehicle , 35 -2- SF230.460 (3) 89 th/ns 2/ 5

or previously damaged to the extent that it was a severely 1 damaged vehicle in another state, the transferor shall 2 make the disclosure on a separate disclosure document. The 3 damage disclosure statement forms shall be as approved by the 4 department. The treasurer shall not accept a damage disclosure 5 statement and issue a title unless the back of the title or 6 separate disclosure document has been fully completed and 7 signed and dated by the transferee and the transferor, if 8 applicable. If a separate damage disclosure document from a 9 prior owner is required to be furnished with the application 10 for title, the transferor shall provide a copy of the separate 11 damage disclosure document to the transferee at or before the 12 time of sale. 13 b. In addition to the information required in subsection 14 2 , a separate disclosure document shall state whether the 15 vehicle’s certificate of title indicates the existence of 16 damage prior to the period of the transferor’s ownership of 17 the vehicle , and whether the vehicle was titled as a salvage, 18 rebuilt, or flood vehicle , and whether the vehicle was damaged 19 to the extent that it was a severely damaged vehicle during the 20 period of the transferor’s ownership of the vehicle. 21 8. A person, authorized vehicle recycler licensed under 22 chapter 321H , or motor vehicle dealer licensed under chapter 23 322 shall not be liable to a subsequent owner, driver, or 24 passenger of a vehicle because a prior owner or lessee gave a 25 false or inaccurate damage disclosure statement or failed to 26 disclose that the vehicle had previously been damaged to the 27 extent that it was a severely damaged vehicle and repaired , or 28 had been titled on a salvage, rebuilt, or flood certificate 29 of title , unless the person, recycler, or dealer knew or 30 reasonably should have known that the prior owner or lessee 31 gave a false or inaccurate damage disclosure statement or 32 failed to disclose that the vehicle had been damaged to the 33 extent that it was a severely damaged vehicle and repaired , or 34 had been titled on a salvage, rebuilt, or flood certificate of 35 -3- SF230.460 (3) 89 th/ns 3/ 5

title. 1 9. Except for subsections 10 and 11 , this section does not 2 apply to motor trucks and truck tractors with a gross vehicle 3 weight rating of sixteen thousand pounds or more, vehicles more 4 than seven model years old, autocycles, motorcycles, motorized 5 bicycles, and special mobile equipment. This section does 6 apply to motor homes. The requirement in subsection 1 that 7 the new certificate of title and registration receipt shall 8 state on the face whether a prior owner had disclosed that 9 the vehicle was damaged to the extent that it was a wrecked 10 or salvage severely damaged vehicle as defined in section 11 321.52, subsection 4 , paragraph “e” , does not apply to a vehicle 12 with a certificate of title bearing a designation that the 13 vehicle was previously titled on a salvage certificate of title 14 pursuant to section 321.52, subsection 4 , paragraph “c” , or to 15 a vehicle with a certificate of title bearing a “REBUILT” or 16 “SALVAGE” designation pursuant to section 321.24, subsection 17 4 or 5 . Except for subsections 10 and 11 , this section does 18 not apply to new motor vehicles with a true mileage, as defined 19 in section 321.71 , of one thousand miles or less, unless such 20 vehicle has incurred damage as described in subsection 2 . 21 Sec. ___. Section 321.69, Code 2021, is amended by adding 22 the following new subsection: 23 NEW SUBSECTION . 13. For purposes of this section, “severely 24 damaged vehicle” means a motor vehicle that has been damaged to 25 the extent that the cost of repair exceeds fifty percent of the 26 fair market value of the vehicle, as determined in accordance 27 with rules adopted by the department, before the vehicle became 28 damaged. > 29 2. Page 1, after line 14 by inserting: 30 < Sec. ___. APPLICABILITY. This Act applies to applications 31 for a certificate of title submitted on or after July 1, 2021, 32 and to motor vehicle leases terminated on or after July 1, 33 2021. > 34 3. Title page, by striking line 1 and inserting < An Act 35 -4- SF230.460 (3) 89 th/ns 4/ 5 #2.